Apple is expected to be fined by the European Union’s antitrust regulators under the Digital Markets Act (DMA), making it the first company to face a penalty under the landmark legislation designed to curb the dominance of major tech firms.
Sources with direct knowledge of the matter indicated that the fine could be announced later this month, although the timing remains subject to change.
The charge against Apple, which was issued by the European Commission in June, marks the first enforcement action under the DMA, a new set of rules aimed at creating a more level playing field for smaller firms in the tech industry. The Commission alleged that Apple violated the DMA’s provisions, particularly related to its App Store policies.
The fine adds to Apple’s growing antitrust challenges in the EU. Earlier this year, in March, the company was penalized €1.84 billion ($2.01 billion) for obstructing competition in the music streaming market. This was Apple’s first-ever fine for breaching EU competition rules, stemming from restrictions placed on its App Store that limited competitors like Spotify from offering alternative payment options.
Under the Digital Markets Act, the European Union has the authority to impose hefty penalties on companies found to be in violation of its rules. In the case of repeat offenses, companies can face fines of up to 10% of their global annual turnover, which for Apple could translate to billions of dollars. The DMA also requires companies like Apple to make significant changes to their business practices, including allowing users to choose their default web browser and enabling alternative app stores on their platforms.
Apple is also currently under investigation for imposing new fees on app developers, which could further complicate its legal troubles in the region. Additionally, the company is facing other challenges in the EU, including a recent ruling that forces it to pay €13 billion in back taxes to Ireland following a long-running court battle.
Apple has not commented on the upcoming fine, and the European Commission has not yet responded to inquiries regarding the matter.
